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Apple Reports Record Q2 Results, Beats Consensus Estimates

by , 4:50 PM EDT, April 25th, 2007

Apple Inc. announced Wednesday results for its 2nd fiscal quarter, ending in March, 2007. The company reported revenue of US$5.26 billion, and a quarterly profit of $770 million, or $.87 per diluted share, record results for the March quarter. Results are ahead of consensus estimates of $5.17 billion in revenue, and well ahead of consensus estimates of $.64 per share in earnings.

"We are very pleased to report the most profitable March quarter in Apple's history," Apple CFO Peter Oppenheimer said in a statement. "Looking ahead to the third fiscal quarter of 2007, we expect revenue of about $5.1 billion and earnings per diluted share of about $.66."

Forecasts are largely on track with analyst forecasts.

Apple reported revenue of $4.36 billion in the year ago quarter, and profits of $.47 per share. Gross margins for the quarter came in at 35.1%, well ahead of the year-ago quarter, and likely to be cited by the company as a big contributor to profits.

The company shipped 1.517 million Macs, up some 36% over the year-ago quarter. Analysts had been expecting 1.4 million Mac units sold.

"The Mac is clearly gaining market share, with sales growing 36 percent -- more than three times the industry growth rate," Apple CEO Steve Jobs said in a statement.

On the other hand, Apple turned in 10.549 million iPod units sold, which is slightly behind consensus estimates of 10.7 million units.

Mr. Jobs also reminded people of the company's upcoming iPhone in the statement, saying, "We're very excited about the upcoming launch of iPhone in late June, and are also hard at work on some other amazing new products in our pipeline."

The Mac Observer will be covering Apple's conference call with financial analysts, which is taking place later on Wednesday.

[Update: The story was updated with additional details. - Editor]

*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.  

If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Observer Comments

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Close Name:Bosco Posts: 966 Joined: 03 Jun 2002
Wed Apr 25, 2007 10:55 pm Subject: What I had for dinner tonight

A huge helping of crow, although the ketchup helped it go down easier. Congrats to Apple. I still think the iPhone is a death march, but at least they're keeping the store open while they're on it! And at under $100/share, they're P/E is a hair under 30, which is back toward the realm of reasonable. Count on it getting back to unreasonable in short order.


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Close Name:gslusher Posts: 2001 Joined: 13 Nov 2002
Thu Apr 26, 2007 12:31 am Subject: Re: What I had for dinner tonight

Quote
Bosco wrote:
A huge helping of crow, although the ketchup helped it go down easier. Congrats to Apple. I still think the iPhone is a death march, but at least they're keeping the store open while they're on it! And at under $100/share, they're P/E is a hair under 30, which is back toward the realm of reasonable. Count on it getting back to unreasonable in short order.


Everything is better with ketchup--except, perhaps, ice cream and lemon meringue pie--though, for some reason, I can't stand ketchup on hot dogs, nor much on hamburgers, but love ketchup on meat loaf (hamburger without the bun).

As for the iPhone being a death march, Apple doesn't need to sell very many to make a lot of money. I may not get one right off the bat--it might be better to wait for iPhone 1.1, but, I will get an 8GB iPhone. My contract with Verizon expired some time ago, so I can switch without penalty. I'll have to ask some local Cingular customers about coverage at places I frequent. (One reason that I got Verizon was that my previous phone, with ATT, would not connect while I was at the stable where my horses live.) I can then ditch my cheap Samsung flip-phone, sell my Palm TX (1 GB SD card) and 2GB iPod Nano 2G, especially if the iPhone will work with my after-market iPod-to-car connection. (No FM transmitter needed.) The only thing that I'd miss on the TX would be Documents to Go, but the few things I use (mostly spreadsheets used as databases) could be printed to PDFs, though I expect to see some Office-compatible application for the iPhone within a year of its launch.


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Close Name:Rainy Day Posts: 607 Joined: 07 Jun 2005
Thu Apr 26, 2007 12:32 am Subject: New products

Wonder what the amazing new products in the pipeline might be? Hmmm. Suddenly i feel tingly all over.


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Close Name:Biff Posts: 1479 Joined: 08 Apr 2004
Thu Apr 26, 2007 10:41 am Subject:

LOL. I love it when people talk about P/E. Reminds of when people order Guiness thinking that it makes them look like a beer connoisseur.


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